Westridge

Still, "Westridge was not a broadly recommended manager by Cambridge," the spokeswoman said.

Consultants Touted Firm Accused in Fraud 2009

In the past, Cambridge did recommend Westridge to other clients, according to investment-committee minutes.

Consultants Touted Firm Accused in Fraud 2009

Wilshire also recommended Westridge to several other big clients including the Iowa Public Employees 'Retirement System and Kern County Employees' Retirement Association in Bakersfield, Calif., both of which did invest, according to investment-committee records and people familiar with the funds.

Consultants Touted Firm Accused in Fraud 2009

Allegations against Westridge strike at the heart of consultants 'business, industry participants say.

Consultants Touted Firm Accused in Fraud 2009

"Westridge has been doing this strategy since April 1996 and has never generated negative alpha in any month during that time," said a September 2008 memo to the fund's board from its chief investment officer and a Wilshire managing director.

Consultants Touted Firm Accused in Fraud 2009

"We never rely on just one recommendation, but instead it's a long, arduous process before an investment is made," said Julie Economaki, spokeswoman for the Iowa fund, which had about $339 million, or 2% of its portfolio, invested with Westridge.

Consultants Touted Firm Accused in Fraud 2009

Westridge is structured like a hedge fund in that it raised money from big institutional clients, pooled the funds, and charged fees based on asset size and profits.

Pair Lived Large on Fraud, U.S. Says 2009

After Greenwood, 61, and his partner Stephen Walsh were arrested last month for allegedly siphoning off $500 million from Greenwood's money management Group, Westridge, all assets were frozen, barring those on the payroll of his business.

Vicky Ward: Concern for Ponzi Ponies 2009

They owned Westridge with another individual, prosecutors say.

Pair Lived Large on Fraud, U.S. Says 2009

Wilshire recommended Westridge to several firms, including an investment of as much as $1 billion at the Pennsylvania Public School Employees 'Retirement System, which ultimately decided not to invest in Westridge.

Consultants Touted Firm Accused in Fraud 2009